Franchising After the Military
It’s become a well-accepted fact in the franchise sector that ex-Military personnel make great franchisees, and there are many, many examples that support the premise. Over the course of this article, we’ll be looking at why that is and how to find out more if this is an avenue that you are considering exploring or simply looking to find out a little more.
By Terence Corness
So, before going any further, let’s clarify – what exactly is franchising? The concept of business format franchising is simple; one party (the franchisor) grants another party (the franchisee) the license to run the franchisor’s proven business model within a territory. The franchisee will pay an initial fee for the franchise, which includes the training and equipment to set up and run the franchise business.
It is very important that the franchisee follows the business model closely, according to the franchisor’s instructions, as this hugely increases their chances of success, and supports consistency across a network. A franchisee agreement will usually run for about five years (although this can be longer if the investment is larger). Following that term, and if performance is good, they will have the opportunity to renew their agreement for another term.
Benefits of franchising
One of the benefits for the franchisee, is that they will have the opportunity to sell their business should they decide to. In partnership with the franchisor, they can agree to sell, therefore benefitting from a return on their investment.
The reason that this fits so well for people that have come out of the Forces, is that many of the attributes, that make for great Service personnel, are similar to those that make great franchisees. Qualities such as integrity, honesty, and determination to succeed are hugely important. On top of that, skills such as team-building and leadership skills, as well as the ability to work to clearly defined processes, all make for a successful combination within the franchise world.
Franchising is a vast and varied sector, encompassing many types of business, from top level business consultancy to drain cleaning, from children’s swimming classes to grounds maintenance, the list is endless. As this sector is so vast (worth around £20bn in the UK alone), it is important to ensure that standards are preserved and this is where the British Franchise Association (BFA) comes in.
The BFA was first established in 1977, and is the voluntary, self-accrediting body for the UK franchise sector. It is the trusted partner for franchisors and for franchisees, and its aim is to promote ethical franchising practice in the UK and help the industry develop credibility, influence and favourable circumstances for growth.
The BFA is currently running a ‘Life After the Military’ campaign, in conjunction with our colleagues, here at Civvy Street Magazine, which aims to match franchise brands together with their potential new franchisees, and we will be running a series of features in this publication over the months to come, which look at this in more detail.
For now, if you would like to find out more about the BFA, please visit: www.thebfa.org